ALP Pool

AlphaSwap Liquidity Providers (ALPs) play a crucial role in the trading ecosystem by supplying the necessary liquidity for perpetual traders. Liquidity providers (LPs) ensure there is sufficient liquidity, allowing traders to test their perpetual trading strategies. As a result, AlphaSwap can offer its trading service without needing to hold huge amounts of liquidity, and LPs are rewarded with the majority of the fees.

Becoming a Liquidity Provider (LP):

• Contribute assets or tokens to the AlphaSwap Liquidity Provider Pool (ALP Pool).

• ALP tokens represent your share of the pool.

• There are fees associated with buying into the ALP pool.

• More on how to get the token in How To Get ALP.

Rewards and Earnings:

• 70% of all perpetual trading fees are deposited into the ALP pool to be distributed among ALP holders (reflected as an increase in the ALP token price).

• Forms an Annual Percentage Rate (APR).

• Higher trading volume generally leads to higher earnings for ALP holders.

Advantages of the ALP System:

• No need to actively "stake" tokens or "harvest" yields.

• APR earnings are embedded within each ALP token and accumulate automatically.

Overall, the ALP system offers a user-friendly method for participants to earn passive income while contributing to the liquidity and stability of the trading environment.

How To Get ALP

ALP tokens can be bought using the Buy ALP page. Options to bridge funds to buy the tokens can be found at the bottom of the Buy page. ALEO is also required to send the buy transaction. Any of the ALP index tokens can be used to buy ALP, a list of the index tokens can be found on the Dashboard. Fees will be lower for tokens that the pool has less of.